China Shineway Pharmaceutical : Resignation of Independent Non-executive Director, Member of Audit Committee and Member of Nomination Committee

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CHINA SHINEWAY PHARMACEUTICAL GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 02877) RESIGNATION OF INDEPENDENT NON-EXECUTIVE DIRECTOR, MEMBER OF AUDIT COMMITTEE AND MEMBER OF NOMINATION COMMITTEE

The board of directors (the "Board") of China Shineway Pharmaceutical Group Limited (the "Company") announces that Mr. Hung Randy King Kuen ("Mr. Hung") has resigned as an independent non-executive director of the Company ("INED"), member of the audit committee of the Company ("Audit Committee") and member of nomination committee of the Company ("Nomination Committee") with effect from 30 March 2017. Mr. Hung would like to spend more time to handle his personal affairs. Mr. Hung confirmed that he has no disagreement with the Board and he is not aware of any matters that need to be brought to the attention of the shareholders of the Company in relation to his resignation.

Following the resignation of Mr. Hung, there remains two INEDs, the number of which falls below the minimum number required under Rule 3.10(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The Company is identifying a suitable candidate to fill the vacancy of the INED with a view to fulfilling the minimum required number of independent non-executive directors under the Listing Rules as soon as practicable within three months from 30 March 2017 pursuant to Rule 3.11 of the Listing Rules.

Furthermore, following the resignation of Mr. Hung, the number of members of the Audit Committee falls below the minimum number required under Rule 3.21 of the Listing Rules and terms of reference of the Audit Committee. The Board will appoint an appropriate person to fill the vacancy in the Audit Committee as soon as practicable within three months from 30 March 2017 pursuant to Rule 3.23 of the Listing Rules.

In addition, upon the resignation of Mr. Hung, the Nomination Committee comprises of Mr. Li Zhenjiang (an executive director of the Company) and Mr. Sun Liutai (an INED). Accordingly, the Company fails to meet code provision A.5.1 of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules, which stipulates that the nomination committee should comprise a majority of independent non-executive directors, and terms of reference of the Nomination Committee. The Board will appoint an appropriate person to fill the vacancy in the Nomination Committee as soon as practicable.

Further announcement will be made by the Company in relation to the appointment of INED, member of the Audit Committee and member of the Nomination Committee as and when appropriate.

The Board would like to express its gratitude to Mr. Hung for his valuable contribution to the Company during his tenure of office.

By order of the Board

China Shineway Pharmaceutical Group Limited Li Zhenjiang

Chairman

Hong Kong, 30 March 2017

As at the date of this announcement, the executive directors are Mr. Li Zhenjiang, Ms. Xin Yunxia, Mr. Li Huimin, Ms. Lee Ching Ton Brandelyn and Mr. Chen Zhong; and the independent non-executive directors are Ms. Cheng Li and Mr. Sun Liutai.